Nevada Family Trust Companies

For affluent families, the goal of strategic estate planning is to safeguard assets while achieving tax efficiency, privacy, and long-term protection. The traditional path, however, often requires entrusting these responsibilities to an external trustee, which can mean giving up a degree of control and participation that many families prefer to retain. As an alternative to relying on individual or corporate trustees, families may instead establish a Nevada Family Trust Company (FTC) — a structure that preserves professional fiduciary oversight while keeping governance and decision-making within the family.

Family Trust Companies are entities that centralize the governance and administration of family trusts and assets within a professionally run structure, while allowing for family ownership and participation.

FTCs are family-owned entities that serve as long-term trustees of trusts established for the benefit of family members. This structure offers a high degree of involvement in governance and investment oversight, subject to limitations designed to avoid adverse tax consequences. FTCs provide families with more influence and participation than traditional trustees while preserving the professionalism expected in fiduciary administration.

Advantages of a Nevada FTC

FTCs are a powerful tool for strategic estate planning, enabling affluent families to exercise greater control and multi-generational involvement. As a single, integrated structure for long-term fiduciary management, they offer customized trust administration and investment oversight. Families can centralize the management of operating businesses, real estate, concentrated holdings, digital assets, and alternative investments—assets that many traditional trustees are unwilling or unable to administer.

FTCs help maintain continuity across generations by minimizing disruptions caused by trustee turnover, retirement, or institutional changes. By clearly defining committee responsibilities and governance processes, FTCs also mitigate the risk of family disputes and ensure that decisions reflect long-term family objectives. They can pool investment capabilities across trusts, providing access to alternative investments and cost efficiencies that would not be achievable for each trust individually. For families with substantial digital assets, FTC structures offer a unique framework for custody and privacy.

Directors and officers of an FTC benefit from limited liability protections, supported by Nevada’s LLC laws and the ability to maintain directors’ and officers’ insurance. This helps attract qualified advisors and allows them to participate in fiduciary oversight without incurring the personal risk associated with acting as an individual trustee.

Family Participation

For many families, an important advantage of establishing an FTC is the ability to involve family members in managing generational assets. FTCs allow family members to take part in governance, investment decisions, and fiduciary processes rather than delegating these responsibilities entirely to external parties. They can function as a family office or fit naturally within an existing family office structure, helping define roles, establish shared decision-making, and promote long-term continuity.

Family members can gain leadership experience through board or committee service, participate in investment discussions, and develop the skills necessary to manage complex assets. FTCs can also incorporate a family foundation into their governance structure to support philanthropic initiatives and reinforce shared values.

Why Not Individual Trustees?

Individual trustees can work well for families with simpler structures, but as assets and family circumstances become more complex, the risks and limitations increase significantly. Individuals often lack the expertise required to administer complex trusts or oversee operating businesses, concentrated positions, or alternative investments. They also face heightened personal liability, and conflicts of interest can arise when individuals serve in overlapping roles.

Individual trustees may not provide a long-term solution due to the natural challenges of retirement, incapacity, and death. Additionally, families sometimes struggle to identify individuals who are willing to serve as trustees under an increasing regulatory and fiduciary burden.

Why Not Corporate Trustees?

Corporate trustees can address the complexities that exceed the capacity of individual trustees, but they also have meaningful limitations. Families have little influence over who within the institution makes fiduciary decisions, and decision-makers may change frequently due to turnover or corporate restructuring. Corporate trustees may be unwilling to manage closely held businesses, real estate portfolios, or illiquid alternative assets.

The incentives of corporate fiduciaries may not always align with those of the family, and maintaining privacy becomes more difficult as information is shared within a larger organization. Bureaucratic processes and organizational constraints can affect responsiveness and create challenges around continuity and consistency of service.

Why Nevada?

Nevada is considered one of the nation’s leading jurisdictions for family trust companies. The state offers a modern statutory framework that emphasizes flexibility, privacy, and asset protection. Key advantages include:

• No state income, capital gain, or estate tax, with benefits extending to non-residents establishing Nevada non-grantor trusts

• Long-term dynasty trusts, with durations of up to 365 years

• Directed trust statutes, non-judicial settlements, and broad decanting authority

• Strong privacy protections—trust details including grantors, beneficiaries, and assets remain out of the public record

• Robust asset protection laws, including domestic asset protection trusts

Nevada’s combination of flexible trust laws, tax advantages, and privacy protections makes it an ideal jurisdiction for families seeking long-term control over their wealth planning structures.

Licensed vs. Unlicensed FTCs

Nevada is one of the few states that allow both licensed and unlicensed family trust companies. Unlicensed FTCs operate without regulatory supervision. They do not have minimum capital requirements and are not subject to periodic examinations by the Nevada Division of Financial Institutions, allowing them to be formed quickly and cost-effectively. Ongoing administration is generally simpler and less expensive due to the absence of regulatory oversight. However, it remains important to establish proper governance and internal controls to maintain trust situs and manage fiduciary risk.

Licensed FTCs obtain a charter from the Nevada Division of Financial Institutions and must maintain minimum regulatory capital of $300,000. They undergo periodic examinations and are required to maintain a physical office in Nevada, employ Nevada-based officers, and comply with all applicable local licensing requirements. In exchange for this regulatory structure, licensed FTCs benefit from important legal and operational advantages. They are exempt from SEC registration as investment advisers, avoiding the limitations of the family office rule and permitting a broader range of fiduciary relationships. Licensing also provides stronger defenses against challenges to Nevada trust situs and generally enhances how the entity is viewed by advisors, counterparties, and courts.

While many families choose to operate unlicensed FTCs because they are less burdensome and less costly, licensing can offer meaningful long-term benefits. The added regulatory oversight, enhanced legal recognition, and greater institutional credibility can help reinforce fiduciary best practices, preserve Nevada situs, and support the overall durability of the FTC structure.

Typical FTC Structure

FTCs are commonly organized as LLCs or corporations and governed by a board of directors or managers. Most families establish at least two core committees:

Distribution Committee – evaluates discretionary distributions and ensures compliance with governing instruments

Investment Committee – oversees investment advisers, investment policy statements, and annual asset reviews

FTCs often include an Amendment Committee composed of independent, non-family members who oversee changes to governing documents, helping maintain compliance with tax considerations.

Families typically appoint a combination of family members, trusted advisors, and Nevada-based professionals as directors, officers, and committee members, ensuring a balance between involvement and independence.

Implementing an FTC

To fully benefit from Nevada’s legal and tax advantages, an FTC must establish meaningful presence within the state. Best practices include:

• Maintaining a physical office in Nevada

• Appointing Nevada-resident officers or directors

• Keeping books, records, and meeting minutes in Nevada

• Conducting board and committee meetings in Nevada

• Establishing Nevada bank or custody accounts

• Complying with local business licensing requirements

  
  

Many families engage professional service providers to support ongoing administration, recordkeeping, compliance, and reporting at both the FTC and trust levels. Successful FTCs require long-term family commitment, clear governance frameworks, and thoughtful coordination with legal, tax, and investment advisors. As fiduciaries, FTCs must administer trusts responsibly and consistently with Nevada law and the family’s objectives.

Conclusion

Family Trust Companies offer affluent families an effective framework for managing assets across generations. By establishing an FTC in Nevada, families gain greater control, participation, and continuity in their estate planning strategies while benefiting from the state’s modern trust laws, favorable tax environment, strong privacy protections, and robust asset-protection statutes.

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About Two Ocean Trust

Two Ocean Trust partners with ultra-high-net-worth individuals, family offices, and foundations. As a privately owned trust company, independent of other financial institutions, we deliver trust, custody, and investment solutions to a select number of important relationships.